Adevinta, the listed Norway-based classifieds company, 59% owned by Schibsted, is effectively merging with the eBay Classifieds Group to create the world’s largest online classifieds group with revenues of $1.8 billion.
Adevinta will be paying eBay $9.2bn ($2.5bn in cash and the remainder in equity). The US company will have a 44% stake in Adevinta (only 33% will be voting shares).
eBay classified brands include: Mobile.de, Gumtree, Marktplaats, dba, Bilbasen, Kijiji, 2dehands, 2ememain, Vivanuncios, Automobile.it, Motors.co.uk, Autotrader (Australia), Carsguide (Australia), and eBay Kleinanzeigen.
The acquisition is expected to complete in early 2021. Adevinta summarised the deal as:
- Creation of an online classifieds market leader operating in 20 countries, covering one billion people, with three billion monthly visits
- The enlarged company will have US$1.8 billion in revenues and US$600 million in EBITDA (2019 basis)
- Significant annual cost synergies totalling US$150-185 million
- Schibsted will also acquire eBay’s Denmark-based classifieds business for US$330 million, reducing the cash consideration from Adevinta to approximately US$2.17 billion
- As a result of the transaction, Schibsted’s shareholding in Adevinta will reduce from 59% to 33%